Tax noncompliance and insider trading

Juha-Pekka Kallunki; Jenni Mikkonen; Henrik Nilsson; Hanna Setterberg

doi:10.1016/j.jcorpfin.2015.12.005

Tax noncompliance and insider trading

Juha-Pekka Kallunki^*
, Jenni Mikkonen
, Henrik Nilsson
, Hanna Setterberg

^*Tämän työn vastaava kirjoittaja

Laskentatoimen ja yritysjuridiikan laitos

University of Oulu
Stockholm School of Economics

Tutkimustuotos: Lehtiartikkeli › Article › Scientific › vertaisarvioitu

11 Sitaatiot (Scopus)

Abstrakti

This paper explores whether insiders who have shown noncompliance with the tax law ('non-compliant insiders') are more prone to exploit their information advantage in insider trading, compared to other insiders ('compliant insiders'). Our empirical results from analyzing archival data of all insider trades in Sweden show that noncompliant insiders use more of their information advantage to trade their insider stocks shortly before significant stock price changes, compared to compliant insiders. These results remain similar after controlling for various insider- and firm-specific determinants of insider returns, including firm and year fixed effects. We believe that our results are of interest for academics and regulatory authorities monitoring and screening insider trading activity. (C) 2015 Elsevier B.V. All rights reserved.

Alkuperäiskieli	Englanti
Sivut	157-173
Sivumäärä	17
Julkaisu	Journal of Corporate Finance
Vuosikerta	36
DOI - pysyväislinkit	https://doi.org/10.1016/j.jcorpfin.2015.12.005
Tila	Julkaistu - helmik. 2016
OKM-julkaisutyyppi	A1 Alkuperäisartikkeli tieteellisessä aikakauslehdessä

Rahoitus

The authors would like to thank the seminar participants at Norwegian School of Economics in Bergen, University of Oulu, and the 5th Workshop on Current Research in Taxation in Prague, and the conference participants at the 38th Annual Congress of the European Accounting Association in Glasgow, and the 2014 Nordic Accounting Conference in Copenhagen for their useful comments and suggestions. The authors also thank Euroclear Sweden, Finansinspektionen, the Swedish Tax Authorities, and the Swedish Research Council for providing the requisite data. This study has been evaluated and approved by the Regional Ethical Review Board in Lima Sweden (DNR 08:074 O and DNR 13-0449/2009). The authors gratefully acknowledge financial support from the NASDAQ OMX Nordic Foundation, Vetenskapsradet, the Handelsbanken Research Foundation, the Finnish Savings Banks Group Research Foundation, the Marcus Wallenberg Research Foundation, the Finnish Cultural Foundation, and the Academy of Finland [Project # 243017121].

YK:n kestävän kehityksen tavoitteet

Tämä tuotos edistää seuraavia kestävän kehityksen tavoitteita:

Kestävän kehityksen tavoite 17 – Yhteistyö ja kumppanuus

Pääsy asiakirjaan

10.1016/j.jcorpfin.2015.12.005

Siteeraa tätä

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AU - Mikkonen, Jenni

AU - Nilsson, Henrik

AU - Setterberg, Hanna

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AB - This paper explores whether insiders who have shown noncompliance with the tax law ('non-compliant insiders') are more prone to exploit their information advantage in insider trading, compared to other insiders ('compliant insiders'). Our empirical results from analyzing archival data of all insider trades in Sweden show that noncompliant insiders use more of their information advantage to trade their insider stocks shortly before significant stock price changes, compared to compliant insiders. These results remain similar after controlling for various insider- and firm-specific determinants of insider returns, including firm and year fixed effects. We believe that our results are of interest for academics and regulatory authorities monitoring and screening insider trading activity. (C) 2015 Elsevier B.V. All rights reserved.

KW - Insider trading

KW - Tax noncompliance

KW - Noncompliant insiders

KW - INFORMATION ASYMMETRY

KW - EARNINGS

KW - TRADES

KW - RESTRICTIONS

KW - ATTITUDES

KW - EVASION

KW - IMPACT

KW - LAWS

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SN - 0929-1199

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SP - 157

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JO - Journal of Corporate Finance

JF - Journal of Corporate Finance

ER -

Tax noncompliance and insider trading

Abstrakti

Rahoitus

YK:n kestävän kehityksen tavoitteet

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